Dow Jones futures rose slightly early Wednesday, along with S&P 500 futures and Nasdaq futures, with the stock market just below record highs. The current stock market rally may be signaling it's a long-term bull. Texas Instruments (TXN), iRobot (IRBT), Snap (SNAP), Edwards Lifesciences (EW) and eBay (EBAY) reported late Tuesday with a huge number of companies reporting before and after the close today.
XTexas Instruments stock reversed lower as the CFO signaled a chip slowdown could last longer. That could be bad news for the powerful chip advance, which has turbocharged the current stock market rally.
Snap stock and eBay stock rose. Edwards Lifesciences stock fell modestly and iRobot stock tumbled.
IRobot stock boasts a 98 IBD Composite Rating out of 99, Texas Instruments has a 95 Composite Rating, followed by Edwards Lifesciences at 93, eBay at 87 and Snap at 77.
Dow Jones Futures Today
Dow Jones futures rose a fraction vs. fair value. S&P 500 futures were just above break-even. Nasdaq 100 futures advanced 0.1%. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Current Stock Market Rally
The current stock market rally powered higher, fueled by earnings from Twitter (TWTR) to Lockheed Martin (LMT). The Nasdaq Composite rose 1.3% and the S&P 500 index tacked on 0.9%, both at all-time closing highs after coming within a fraction of last year's record intraday highs. The Dow Jones rallied 0.5%, now within 1% of record levels. The Nasdaq 100 continued to hit record highs, soaring 1.3% as Apple (AAPL) and the FANG stocks all outperformed the S&P 500 index, while Qualcomm (QCOM) surged 6%.
Growth stocks fared well, especially software. Among the best ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rebounded 1.6%, back at record highs after pulling back last week. The VanEck Vectors Semiconductor ETF (SMH) advanced 0.8% to a new high, but fell slightly after hours as Texas Instruments stock dropped. The Innovator IBD 50 ETF (FFTY) jumped 1.1%.
A Long-Term Bull Market?
With megacap techs and growth stocks hitting record highs, it's no surprise that the stock market indexes are knocking on the door.
If the current stock market rally convincingly clears the old highs, that would be a strong signal that a new or revived long-term bull market is back in play. Over the past few months, the stock market has offered dozens of top stocks breaking out bullishly and delivering solid gains. This stock market rally was tradable, but we haven't had clear indications that it's truly a bull market.
Texas Instruments Stock
Texas Instruments earnings and sales topped Q1 views. Gross margins and Texas Instruments guidance for Q2 were slightly below the consensus. Shares initially popped 5% but then reversed to trade down 1.5% to 114.60 early Wednesday. CFO Rafael Lizardi says cyclical chip downturns typically have four to five quarters of declines. TI just had its second quarter of falling sales. Investors have bought Texas Instrument stock and other chip names on expectations of an industry recovery later this year.
Texas Instruments stock rose 1.2% to 116.38 on Tuesday, still in buy range from a 113.08 handle buy point. Group leader Xilinx (XLNX) and industry giant Intel (INTC) report this week.
Snap Stock
The Snapchat parent topped views for per-share loss, revenue and user levels. Snap stock initially spiked late, then slashed gains, but was up 4.7% early Wednesday. Shares rallied 4% Tuesday 11.99, as Twitter stock surged nearly 16% on its earnings. Snap stock has been rallying from a long downtrend, but does not yet have a proper base or buy point.
IRobot Stock
IRobot earnings topped views but sales fell short. Shares of the Roomba maker plunged 15% before the open. The latest IBD Stock Of The Day, iRobot stock had closed up 1.4% to 130.57, near a base-on-base entry of 132.98.
EBay Stock
EBay earnings topped views. Shares rallied 4.4% overnight after eBay stock rose 1.4% Tuesday to 36.67. The e-commerce giant is working on a 39.24 buy point from either a long cup-with-handle base or a short flat base. The relative strength line has been lagging, but a strong eBay stock pop would push the RS line toward short-term highs.
Edwards Lifesciences Stock
Edwards Lifesciences earnings and revenue beat. But shares of the medical device maker lost 2.75% late. Edwards Lifesciences stock closed up 1.4%, just below its 50-day line. It's trying to bounce back after selling off with medicals last week.
Boeing Earnings Set To Swing Dow Jones Futures
Dow Jones futures could be especially volatile overnight. Boeing earnings headline early Wednesday morning results, with investors eager to learn how costly the 737 Max fiasco will be. Boeing (BA) is the biggest weight in the price-weighted Dow Jones Industrial Average. Many other big names report before the open, with a deluge after the close.
The current stock market rally could easily clear all-time highs, with the Nasdaq just 0.15% off its peak and the S&P 500 index 0.25%. But it wouldn't be a surprise to see major stock market indexes hit resistance just below or above record levels.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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